The app is called TrueView and it works by aggregating and organizing financial transactions from online accounts and matching them to mortgage lender criteria.
The innovative nature of the offer has been recognized by the FCA and included in their sandbox for live testing. The FCA Sandbox is part of Project Innovate, an initiative launched in 2014 to deliver new innovations in financial services.
Steve Tigar, CEO of Money Dashboard, said, “Our consumers’ primary financial goal is to climb the real estate ladder, but they find the prospect of a mortgage incredibly daunting.
“The complexity of obtaining information makes them postpone seeking professional advice until the last moment, which is far from ideal as it is the most important financial decision most people will ever make.”
Applying for a mortgage mainly offline and on paper. According to a study by the GBG, an estimated 65% of consumers no longer receive paper statements and 42% do not have paper copies of utility bills, resulting in a three-hour document collection process.
The research found that the whole process is so stressful that 35% of shoppers get sick from it; and according to research by Aldermore, simplifying the customer journey is a top priority for consumers to alleviate this problem.
Further research by Money Dashboard found that 76% of consumers take more than two years to prepare for a mortgage. Contrary to expectations, it was only in the last three months before applying for a mortgage that there was a significant increase in activities to prepare financially or to seek advice from a broker or lender.
The past 21 months have been almost entirely online trying to understand how different product and information providers can help them.
How does TrueView work?
Rory Bailey, Head of Operations at Money Dashboard, said, “Spending 21 months searching for security from one source of information to another, like knocking around inside a pinball machine and blindly hoping for the desired outcome, is anything but ideal.”
Money Dashboard’s TrueView solution instantly aggregates and organizes income and expense data from all online checking accounts, savings accounts and credit cards, providing a unique, bespoke assessment of what a consumer can afford based on lender criteria. It replaces “estimates” of consumers with an impartial and accurate representation of their financial condition.
Consumers can use the tool to plan and improve their affordability, and when ready, use the rating and data to apply for a mortgage.
The company says the app is replacing fact finding, affordability assessments, and bank statement collecting. Verified data can be accepted directly by brokers and lenders to support a digital mortgage application that makes applications digital, easy and transparent.
TrueView represents the latest evolution of Money Dashboard’s affordability tool, which was in beta last summer and officially launched in October 2016 at the Council of Mortgage Lender’s first digitization conference.